Norwich Union has record year

A growing number of savers and buoyant equity markets have helped Norwich Union owner Aviva achieve its best-ever performance in the UK.

Unveiling its full-year life and pensions sales figures, the company said that Norwich Union had a record year with sales up 35pc to £14bn.

Executive director Philip Scott said the growth was "underpinned by an improvement in customers' savings habits" as well as changes to the pensions regime last April and stronger equity markets. The company said it expected to have increased its market share in the UK.

In the UK, pensions sales rose 40pc to £5.07bn. Aviva said that the impact of the changes at A-Day "is now diminishing but is still expected to buoy the market to a lesser extent in 2007."

Total annuity sales fell to £1.51bn from £1.59bn as the company was more selective about the business it wrote as the market became more competitive.

Aviva said that its total worldwide sales rose 22pc to £31.1bn, at the top end of market expectations. The company does not reveal margins at this stage but Mr Scott, who will become finance director when Andrew Moss steps up to chief executive, said: "We've kept a firm eye on delivering profitable growth."

International sales were up 13pc at £17.2bn, boosted by growth of 91pc in Asia. However, the region still accounts for just 6pc of total international sales.

Aviva completed the acquisition of US insurer AmerUs in November. Mr Scott said the unit had "generated record sales despite a period of considerable change."

Europe was a mixed picture with strong growth in Ireland and Italy offset by a weaker performance in the Netherlands. However Mr Scott said that the international business remained "on track to deliver average organic growth of at least 10pc over the next five years."

Investment sales grew 48pc to £4.9bn, the company said.

Aviva is considering a reattribution of its inherited estate, a pot of money that has built up in its with-profits funds. It has appointed former gas regulator Clare Spottiswoode as Policyholder Advocate to consult with customers on achieving the best deal.

Patrick Snowball, the executive director responsible for the UK business, said: "We're working very closely with her and the FSA to make certain we stick to the right timetable."